As the UAE strengthens its position as a global business hub, setting up your company in one of its fast-growing economic zones is a strategic move. For entrepreneurs, SMEs and established enterprises alike looking for a streamlined, cost-effective business setup—especially in the northern emirates—understanding how to navigate company formation in RAKEZ is essential. This guide will show you how you can leverage RAKEZ in 2025, and how ProAct can deliver the expertise, innovation and compliance edge you need to launch and thrive.
Why Choose RAKEZ for Business Setup in UAE?
What makes RAKEZ a compelling choice for company formation?
- 100% foreign ownership of companies is available.
- Free-zone style benefits: simplified licensing, minimal currency restrictions, access to global markets via Ras Al Khaimah location.
- Full suite of services within one hub: licensing, visas, approvals.
- Cost-effective compared to some Dubai-based zones; transparent packages offered.
Key Takeaways:
- ✅ Full foreign ownership in RAKEZ = simplified ownership structure.
- ✅ Lower overheads vs some premium free zones = cost-efficient for startups/SMEs.
- ✅ Both free-zone & mainland-accessible structures = flexible.
- ✅ Consolidated set-up (licence, visa, approval) = faster time to market.
What types of legal entities and licences can you form in RAKEZ?
- Free-zone – Limited Liability Company (FZ LLC)
- Subsidiary for head office company
- Branch of foreign company
Licence categories and business activities
RAKEZ covers a wide range of industry sectors: trading, services, e-commerce, education, industrial/manufacturing.
Example licence types:
- Commercial/trading licence – for general trading activities
- Service licence – consultancy, marketing, IT services
- Industrial/ Manufacturing licence – for manufacturing, warehousing, production
- E-commerce licence – for e-commerce activities.
Share capital, office and visa requirements
- Minimum share capital dependent on entity type.
- You will need a physical presence: office, warehouse, flexi-desk, or land allocation depending on your licence.
- Visa eligibility depends on licence type and office space size (investor visa, employee residency visas).
Key Takeaways:
- ✅ Choose entity structure that aligns with your market (free-zone vs mainland).
- ✅ Determine licence category early: trading, service, industrial, e-commerce.
- ✅ Understand workspace & visa implications—they affect cost and setup time.
- ✅ Using an expert partner (like ProAct) reduces risk of choosing wrong structure or missing compliance.
Step-by-Step Process: How to Set Up Your Company in RAKEZ
- Define your business activity
Decide what you will do (e.g., digital marketing, ecommerce, manufacturing). This determines licence category, entity type and cost. - Choose location and entity type
Decide free-zone vs non-free-zone/branch. - Reserve trade name and obtain approvals
Submit proposed name, activity details, get initial approvals. - Submit documents and pay fees
Application form, shareholder passport copies, visa/entry stamp (if applicable), MoA, lease agreement. - Lease office/warehouse and meet workspace requirements
Based on your activity you’ll need the appropriate leased space in RAKEZ. - Receive your licence and incorporation certificate
Once approvals are cleared and fees paid you’ll be issued your trade licence and certificate. - Open corporate bank account & apply for visas
With your licence you can then proceed to open a bank account, apply for visa(s). - Begin operations / renew license annually
Ensure timely renewal, compliance filings (audit, corporate tax, if applicable).
ProAct advantage: With our four-layer review process (initial consultation, document check, pre-submission review, post-licence compliance check) we commonly cut setup time by 30-40% and mitigate delays due to missing paperwork or rejected applications.
Cost Breakdown & Financial Planning for RAKEZ Setup
Starter package and typical fees
- RAKEZ provides an all-inclusive free-zone business-setup package starting AED 6,010/year for Business License and AED 12,010/year including visa.
Cost components you must budget for
| Cost Component | Typical range | Notes |
|---|---|---|
| Trade licence fee | AED 6,000-15,000+ | Varies by activity, entity type |
| Office/warehouse lease | Varies | Size & location within RAKEZ matter |
| Visa & immigration costs | Varies | Number of visas depends on licence |
| Bank account opening & deposits | Varies | Some banks require minimum balances |
| Annual renewal & compliance (audit, tax) | Varies | Non-compliance can cause fines |
| Service provider / consultancy fees | Varies | For expert-led setup & ongoing support |
Hidden costs & what to watch out for
- Workspace upgrades or size expansion if activity changes.
- Activity needing pre-approvals (manufacturing, education) may incur extra fees.
- Non-free-zone entity may have mainland compliance obligations.
- Corporate tax implications (see next section).
- Service provider “premium support” fees (e.g., expedited VIP packages).
Key Takeaways:
- ✅ Set realistic budget including licence + workspace + visas + consultancy.
- ✅ Choose service provider who explains all cost components (ProAct does).
- ✅ Factor in annual renewals and compliance—not just initial cost.
Compliance & Corporate Tax: What You Need to Know
Corporate tax in free-zones & RAKEZ
- The UAE corporate tax regime (federal) applies from June 2023: companies with profits above AED 375,000 are subject to 9% tax.
- Free-zone entities in RAKEZ still benefit from favourable tax treatment provided they meet conditions (e.g., remain a free zone company, derive income qualifying activities etc).
- Non-free-zone / mainland-accessible entities may move into more complex tax/compliance territory.
Annual audit & licence renewal obligations
- Many free zones require audited financial statements, timely renewal of licence, visa compliance (labour law), beneficial owner registry (UBO obligations).
- Service providers that do not guide you on these can leave you exposed.
Why your compliance partner matters
At ProAct, our four-layer review process ensures:
- Initial documentation check (legal name, shareholders, activity)
- Pre-application compliance review (corporate tax, AML/CFT, BO register)
- Pre-submission review (ensuring RAKEZ requirements, visa capacity, leasing)
- Post-licence compliance follow-up (audit timeline, tax returns, dashboards)
Key Takeaways:
- ✅ Understand your corporate tax obligations.
- ✅ Choose a service provider who supports compliance beyond licence issuance.
- ✅ Dashboards, reminders and audit workflows reduce risk of fines or shut-down.
When RAKEZ is the better choice
- You’re cost-sensitive (startup / SME) and want full ownership with lower overheads.
- You need flexible structure: free zone + ability to serve mainland UAE.
- Your activity includes manufacturing, warehousing, industrial uses which RAKEZ supports.
- You’re comfortable being based in Ras Al Khaimah (vs central Dubai) and leveraging affordable infrastructure.
When a Dubai-based free zone may be preferable
- You’re targeting premium brand positioning, heavy Dubai-market presence, high foot-traffic location.
- Your activity is heavily Dubai-centric or requires Dubai local network/visibility.
Key Takeaways:
- ✅ Choose the zone that aligns with your business model (cost, market, activity).
- ✅ RAKEZ offers strong value-proposition for many enterprises.
- ✅ Engage a consultant (like ProAct) to map your requirements and choose appropriately.
Real-World Example: How ProAct Assisted a Tech Startup Launch in RAKEZ
Scenario: A UAE-based tech company, e-commerce SaaS provider, headquartered in Sharjah, wanted to establish a second entity in RAKEZ to service export markets and benefit from free-zone licence.
Solution delivered by ProAct:
- Held initial consultation with our four-layer review process.
- Guided the client to select a free-zone service licence in RAKEZ targeting e-commerce + software services.
- Document-check phase uncovered that their workspace was undersized for visa eligibility; we negotiated flexi-office upgrade.
- Submitted application on day 3, secured RAKEZ licence in 8 business days (versus the typical 10-14).
- Assisted in opening corporate bank account in Ras Al Khaimah, relieving founder of multiple bank visits.
Outcome: Client saved ~30% compared to a Dubai-zone alternative and got to market quicker.
Key takeaway for you: With the right partner – and the right model – setting up in RAKEZ can be efficient, cost-effective and growth-oriented.
Common Pitfalls to Avoid When Setting Up in RAKEZ
- Choosing an inappropriate activity or licence category (leading to additional approvals or rejected applications).
- Under-estimating workspace or visa requirements (costs escalate later).
- Delaying renewal or audit obligations, leading to fines or licence suspension.
- Not aligning entity structure to your planned market.
- Using a service provider who only sets up the licence and drops you—no ongoing compliance support.
With ProAct’s comprehensive service you get end-to-end support: from setup through to compliance monitoring, audit readiness and growth planning.
Frequently Asked Questions (FAQs)
- What is the process to set up a company in RAKEZ free zone?
Short answer: Choose your activity, reserve a trade name, submit application & documents, get licence.
Detailed answer: The setup in Ras Al Khaimah Economic Zone (RAKEZ) follows a streamlined process: you start by selecting the legal structure and licence category, then reserve a trade name in the RAKEZ portal. - How much does a RAKEZ company formation cost in UAE?
Short answer: Starting packages begin around AED 6,000–14,000, but full costs vary depending on licence type, workspace and visas.
Detailed answer: For example, RAKEZ provides an AED 14,000 all-in-package for SMEs including visa. Additional costs such as office lease or industrial space can raise the total. - Can a foreigner own 100 % of a company in RAKEZ?
Short answer: Yes — full foreign ownership is permitted for free-zone entities in RAKEZ.
Detailed answer: This means you don’t need a local UAE national partner, giving you full strategic control of your business in RAKEZ. - What types of licences are available in RAKEZ for new business setup?
Short answer: Commercial/trading, service, industrial, e-commerce licences and more.
Detailed answer: RAKEZ covers a broad range of activities: trading goods, providing services, manufacturing, e-commerce, education and even freelancer licences. The correct category depends on your business activity. - How long does RAKEZ company formation take?
Short answer: Often between 5-10 business days if documentation is complete; up to 2-4 weeks in some cases.
Detailed answer: The timeline depends on factors such as your legal structure, activity, paperwork completeness, and office lease. Working with a consultant (like ProAct) helps accelerate the process. - What workspace/office requirements exist for a RAKEZ licence?
Short answer: Your licence type determines the required space: office, warehouse, land, flexi-desk etc.
Detailed answer: For industrial activities you may need a plot of land or warehouse; for services you might qualify with a flexi-office. It’s vital to align the workspace with visa quota requirements. - How many visas can I get with a RAKEZ company?
Short answer: Visa quota depends on the size of your office and licence category; free-zone packages often include at least one investor/resident visa.
Detailed answer: For example, some SME-packages include a visa; if you plan to hire employees you’ll need to align with RAKEZ-visa rules and workspace size. - What are the corporate tax implications for a RAKEZ company?
Short answer: If profits exceed AED 375,000 you may be subject to UAE federal corporate tax at 9%; free-zone benefits depend on meeting conditions.
Detailed answer: It’s critical to ensure your entity qualifies for free-zone tax benefits and to plan for audit and tax-return obligations. ProAct’s compliance framework helps you stay on track. - What are the renewal and audit requirements for a RAKEZ licence?
Short answer: Licence must be renewed annually and audited financials may be required depending on your activity.
Detailed answer: Missing renewal or audit deadlines can result in fines or licence suspension. At ProAct we embed compliance reminders in our dashboard and assist with audit readiness. - What documentation is needed to incorporate in RAKEZ?
Short answer: Passport copies, visa/entry stamp (if applicable), application form, trade-name reservation.
Detailed answer: Corporate shareholders will also need certificate of incorporation, board resolution, etc. Ensure all documents are notarised/attested as required. - Is setting up in RAKEZ cheaper than other UAE zones?
Short answer: Generally yes, especially for startups and SMEs, but your licence type, workspace and visas will affect cost. - Can I change licence activity or upgrade my RAKEZ company later?
Short answer: Yes – many free zones allow licence amendment or upgrade (e.g., adding activities, expanding workspace) but cost/time will apply.
Detailed answer: If you anticipate growth (e.g., from service licence to manufacturing), plan initial structure accordingly and engage your consultant early for roadmap. - What happens if I don’t comply with RAKEZ regulations (visas, audit, etc)?
Short answer: Possible consequences: fines, inability to renew licence, visa cancellations, reputational risk.
Detailed answer: That’s why choosing a partner (ProAct) that embeds compliance monitoring is a strategic move. Regular checks, alerts and audit readiness are crucial. - Which industries are best suited to RAKEZ?
Short answer: Services, e-commerce, trading, manufacturing, education, media.
Detailed answer: Because RAKEZ supports a wide range of activities across 50+ sectors and has infrastructure for industrial, service and education zones, you can choose a fit for startup, growth or manufacturing models. - How does ProAct support clients setting up in RAKEZ from Dubai/Sharjah/Abu Dhabi?
Short answer: We provide end-to-end consultancy: entity structure advice, licence processing, bank account opening, compliance support.
Detailed answer: Starting with a free initial consultation, we map your business model, help you choose RAKEZ-structure vs alternate free zone, handle documentation, and then deliver ongoing services including audit readiness, AML grievance support and local compliance across Dubai, Sharjah and Abu Dhabi markets.
Summary:
Setting up your company in RAKEZ offers a compelling blend of full foreign ownership, competitive costs, free-zone benefits and flexible structure. With the right partner (such as ProAct), you can navigate the process swiftly, avoid common pitfalls, and build a scalable foundation.
Final Key Takeaways for Skimmers:
- ✅ Choose RAKEZ if you want cost-efficient, flexible UAE setup with full foreign ownership.
- ✅ Define your activity early, select correct licence, align workspace & visas.
- ✅ Budget realistically—not just licence but lease, visas, renewals, audit compliance.
- ✅ Compliance is ongoing: corporate tax, audit, BO registry, licence renewal.
- ✅ Use a specialist partner (ProAct) with tech + process frameworks to reduce time and risk.
- ✅ Refresh your knowledge annually and monitor regulatory changes to stay ahead.
Disclaimer:
This article is for general informational purposes only and does not constitute legal, tax, accounting or investment advice. Each business’s situation is unique—please consult with ProAct Chartered Accountants (or your qualified advisor) for jurisdiction-specific advice tailored to your circumstances.
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